The San Diego City Council voted 8-1 Tuesday to place a measure on the June 2 ballot that would tax empty homes in an attempt to increase the housing supply.
If approved by voters, the city would impose an $8,000 tax on vacant second homes in 2027 and a $10,000 tax from 2028 on. An additional surcharge of $4,000 for 2027 and $5,000 for 2028 on would be imposed on corporate-owned vacant homes.
"The desire to have a damn chance in this city is so strong. We need to encourage that," said Councilman Sean Elo-Rivera, who proposed the ballot measure. "The overwhelming majority of San Diegans will never pay this tax. It does not require anyone to rent their home. Owners retain the full right to keep their homes vacant."
The measure would apply only to vacant second homes that sit empty for more than half the year and does not apply to primary residences or short- or long-term rental properties. There are 5,140 vacant homes in the city, officials said.
It also includes exemptions for hardship, military service, disaster damage, probate and long-term care
According to the Independent Budget Analyst's office, tasked "to provide clear, objective and unbiased analysis and advice," on the more conservative end with 65%-70% of vacant homes exempt for one reason or another, the measure would bring an estimated $9.2 million to the city's general fund in its first year, $10.4 million in the second. The IBA's more optimist range, where only 45% of those vacant homes are exempt, is $21.4 in the first year and $24.2 in the second.
"This is about fairness and a reasonable use of housing," said Council President Pro Tem Kent Lee. "If someone chooses to keep a home empty, they should contribute a little more.
"We should give the voters an opportunity to decide on a focused and reasonable proposal."
Opponents of the proposal spoke out Monday, stating it would not significantly impact housing supply and homeowners could be penalized for difficult compliance and enforcement mechanisms.